The Japanese Yen remained relatively unchanged against its major global counterparts as the Bank of Japan delivered in its monetary policy announcement. The bank maintained its monetary base target at ¥270 trillion and stuck with its pledge to increase it by ¥60 to ¥70 trillion each year, as expected.Officials stated their expectations of a moderate recovery in the economy despite this year’s sales tax hike and saw the inflation rate stable around 1.25 percent for the time being.

The Yen’s limited response to the policy announcement likely reflected the outcome’s alignment with priced-in expectations, meaning it offered no meaningful impetus for traders to readjust their positions. Currency Analyst David Song argued in his weekly Yen forecast that the BOJ’s apparent confidence in being able to reach its objectives with the current policy mix as-is meant Governor Kuroda and company were unlikely to deliver anything materially different from the status quo this time around.